Posted on 07/18/2023 7:08:39 AM PDT by MrRelevant
The overall rejection rate for credit applicants hit its highest level in five years in June.
The rejection rate of 21.8% was the highest level since June 2018, the Federal Reserve Bank of New York reported Monday (July 17) when releasing findings from its June Survey of Consumer Expectations (SCE) Credit Access Survey.
“The increase was broad-based across age groups and highest among those with credit scores below 680,” the New York Fed said.
The rejection rate increased for credit card limit increase requests, credit cards, mortgage refinance applications, auto loans and mortgages, according to the findings. The rate increased to 30.7%, 21.5%, 20.8%, 14.2% and 13.2%, respectively.
The rejection rate for auto loans — which rose from 9.1% in February to 14.2% in June — reached “a new series high,” the New York Fed said.
(Excerpt) Read more at pymnts.com ...
It really depends on the profile of the applicants. Maybe more people with poor credit are applying?
My son, who makes six figures in the IT industry, was just denied an increase on his line of credit.
No bankruptcies, over extension, past due bills, etc. Great credit history and rating that allowed him to take out VERY low interest car loan.
Amazingly, this statistic is for people trying to get loans on Commercial Real Estate! ;-)
Probably a combination of banks tightening standards and folks reaching the end of their credit worthiness.
In any case I think this realistically shouldve happened a year ago. This seems like this should influence odds the recession that hasnt really happened but shouldve by now.
Some folks are about to hit rock bottom just as Biden begins to crow about soft landings and upward trends.
Meanwhile: credit scores are racist.
Like math and vaccines?
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